Sustainability as a strategy of the European Union for the European Business Sector
The European Union (EU) has shown a strong commitment to guiding the business sector toward sustainability through a set of regulations and policies that promote responsible business practices aligned with climate goals.
The european Green Deal: a commitment to sustainability
Launched in 2019, the European Green Deal is the EU’s response to the challenges of climate change and environmental degradation. This plan aims to make Europe the first continent to achieve carbon neutrality by 2050, fostering a modern, resource-efficient, and competitive economy.
To reach this goal, the EU proposes, as a first step, to reduce net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels.
Regulation (EU) 2020/852: establishing the environmental taxonomy
As part of this commitment, the EU implemented Regulation (EU) 2020/852, known as the Taxonomy Regulation. This sets clear criteria to determine whether an economic activity is environmentally sustainable, facilitating investments that contribute to objectives such as:
- Climate change mitigation and adaptation
- Sustainable use and protection of water and marine resources
- Transition to a circular economy
- Pollution prevention and control
- Protection and restoration of biodiversity and ecosystems
This regulation also aims to combat “greenwashing,” ensuring that investments labeled as sustainable genuinely contribute to environmental goals.
Additionally, the EU has promoted other initiatives, such as the Corporate Sustainability Reporting Directive (CSRD), which establishes requirements for companies to disclose sustainability information, and the European Sustainability Reporting Standards (ESRS), designed to simplify and harmonize the reporting process.
These measures reflect the European Union’s commitment to creating a regulatory environment that encourages businesses to adopt more sustainable practices, aligning with the goals of the Paris Agreement and promoting a greener and more resilient economy.
What are the implications for companies?
Companies are expected to align their operations with Environmental, Social, and Governance (ESG) factors, integrating sustainable practices into their business strategies. This alignment not only meets regulatory demands but also positions companies competitively in a market increasingly driven by sustainability.
The role of IAPMEI in promoting business sustainability
According to the Business Council for Sustainable Development Portugal (BCSD Portugal), sustainability means meeting current needs without compromising the ability of future generations to meet theirs. In the business context, IAPMEI reflects this vision through the capacity of organizations to operate while considering the three main ESG pillars:
- Environmental: conserving and protecting natural resources
- Social: promoting healthy, equitable, and resilient relationships with employees, customers, and the community
- Governance: ensuring an ethical, transparent, and responsible corporate culture
These factors are essential to ensure business continuity and relevance in an increasingly demanding and regulated market.
In Portugal, IAPMEI provides resources and guidance to support companies in this journey. By offering information on EU and national regulations as well as on sustainable business practices, the agency facilitates access to financing and investment opportunities aligned with the EU’s objectives. These help businesses adapt to sustainability challenges, such as:
- Green Growth Commitment
- Sustainable Development Goals (SDGs)
- Circular Economy
- ESG Sustainability Reporting
- Corporate Social Responsibility (CSR)
A strategic opportunity
Adopting sustainable business practices is not just a regulatory requirement but a strategic opportunity for companies to position themselves in a transforming market. Aligning with the objectives of the European Green Deal and integrating the criteria of the EU Taxonomy are key steps to ensure long-term competitiveness and resilience.
Although sustainability reporting is not yet mandatory for Small and Medium Enterprises (SMEs), Prudêncio was founded on the principle of sustainability and is aligned with the EU’s mission to make Europe and the world more sustainable.
The company’s representation in Portugal of Köster’s TPO, a product awarded the Gold rating—the highest classification for sustainable construction by the German Institut Bauen und Umwelt e. V. (IBU)—is a clear example of this commitment.
